Tuesday, March 3, 2009

House Democrats Reportedly Reach Agreement on H.R. 1106, House Rules Committee Set to Reconvene Tomorrow

The Washington Post reports the House Democrats have reached on agreement on H.R. 1106, the "Helping Families Save Their Homes Act of 2009" with changes to "narrow" some of the bill's provisons.

H.R. 1106 has apparently been sent back to the House of Representative's Rule Committee which is reconvene on the bill tomorrow March 4 at 2:00 p.m. Congressman John Conyers, Jr. (D. Mich.) offered a "proposed revision to Amendment #1 printed in House Report 111-21."

The House of Representative meeting as a "Committee of the Whole House on the state of the Union" considered H.R. 1106 on February 26, 2009, but left is as "unfinished business."

Provisions in the proposed revisions include a new defined term "qualified loan modification" (as section 101 (43A)) and a change in the "clawback" for the mortgage holder on a subsequent sale at an appreciation to 90% for the first year, 70% for the second year, 50% for the third year, 30% for the fourth year and 10% for the fifth year. The clawback would give the mortgage holder a share of the increase in value for five years. "Lack of good faith" would exist if the debtor "can pay all of his or her debts and any future payment increases ...without difficulty for the foreseeable future, including positive amortization of mortgage debt." There is also a provision providing for a reduction in mortgage interest rate to achieve an affordable monthly payment as a percentage of monthly income as an apparent second choice in addition to mortgage principal reduction.
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